A lithium production project between Truro and Redruth has moved a significant step forward.
Cornish Lithium has secured £7.2m in grant funding through the Government's DRIVE35 programme. The money will part-fund a £14.5m programme of drilling and testing at its Cross Lanes Geothermal Lithium Project, near Chacewater.
The funding will help the company assess whether commercial production at the site is technically and economically viable, and will allow for further appraisal drilling.
Cornish Lithium was founded in 2016 and now employs around 100 staff across its sites at St Dennis, United Downs and Penryn.
Lithium is a key component of lithium-ion batteries, which power consumer electronics, electric vehicles and large-scale energy storage systems, as well as a range of advanced manufacturing applications.
The company's projects align with the Government's Industrial Strategy, Growth Sector strategies and the recently published Critical Minerals Strategy. That strategy identifies lithium as essential to the zero-emission energy transition and sets a domestic lithium production target of 50,000 tonnes per year by 2035.
Earlier this year, the Government announced the £30m Kernow Industrial Growth Fund, delivered by Cornwall Council. It aims to unlock wider private and institutional investment into Cornwall's high-potential industrial sectors, focusing on critical minerals, renewable energy, space and marine innovation.
Successful exploration drilling and testing in 2023 confirmed the presence of lithium-enriched geothermal waters circulating naturally through rock formations at the Cross Lanes site. In 2025, the company secured planning approval for the development of the site, including further phases of testing and evaluation.
The DRIVE35 grant, matched pound-for-pound by Cornish Lithium, will allow the company to drill two 2,000-metre production wells and operate a Direct Lithium Extraction demonstration plant at Cross Lanes. It will also fund an appraisal well at the adjacent Baldhu site to confirm the existence of additional lithium resources.
"This grant is further recognition that Cornwall is at the heart of the UK's clean energy ambitions," said Jamie Airnes, CEO of Cornish Lithium.
"Our projects have the potential to meet nearly 40% of the Government's domestic lithium production target – delivering a scalable, low-carbon and secure supply of lithium for the UK, right here in Cornwall. That means £3.8bn contributed to the Cornish economy over the next 25 years and more than 700 well-paid, long-term jobs for the next generation, offering career opportunities that can keep home-grown talent in Cornwall."
Jayne Kirkham, Labour MP for Truro and Falmouth, added: "This is very exciting news for Cornwall because critical minerals are essential to the UK's economy, national security and clean energy transition.
"Our rich granite bedrock places our region at the heart of a cleaner, more resilient future and in creating hundreds of jobs, supporting local communities and strengthening our economy, this project presents a significant opportunity for Cornwall and the UK."
Source: Cornwall Live — Read the original article
Major Cornwall lithium project takes giant step forward near Truro